Page |1

HOW SMALL BUSINESSES INVEST IN DIGITAL MARKETING

In 2018, small businesses will conduct digital marketing via their websites, social media, email campaigns, and
more, according to Clutch's 2018 Small Business Survey. Here are some tips for turning a small digital
marketing budget into real customer engagement.

The adage “you must spend money to make money” is true for digital marketing.

Although the concept is familiar to most small business owners, many still struggle to choose the best
marketing methods or to afford marketing at all.

Clutch’s 2018 Small Business Survey examines the state of digital marketing. In this article, we’ll use the
survey’s findings to explain how small businesses can invest in the top digital marketing channels and discuss
how to optimize an in-house digital marketing team.

 Most small businesses (47%) spend less than $10,000 on digital marketing, indicating that they have
small or non-existent budgets.
 In-house help is the most common digital marketing resource (43%), but industry leaders say that small
businesses that try to handle everything in-house may overextend themselves.
 The majority of small businesses use both social media (62%) and a website (61%) to market
themselves.
 The majority of small businesses (80%) do not invest in content marketing, and experts warn that they
are missing a key marketing opportunity.
 Websites (54%), social media (51%), and email marketing (36%) are the top three digital marketing
channels that small businesses will invest in during 2018.
 Augmented and virtual reality are the least common forms of small business digital marketing (only
10%), but AR/VR can be highly effective for some small businesses.
 Page |2

OVERALL STATE OF SMALL BUSINESS INVESTMENT IN DIGITAL MARKETING

Many small businesses set aside a small amount of money ($10,000 or less) for digital marketing. What
money they do use tends to go toward social media, a website, and email marketing.

In 2017, nearly half of small businesses spent $10,000 or less on digital marketing.

Only a quarter spent between $10,001 and $100,000 on digital marketing, and a minority (13%) spent
upwards of $500,000.

This is likely because most small businesses, termed "everyday businesses" by Janet Attard, are very small,
with 10 or fewer employees. These businesses generate a small amount of revenue and therefore don't have
much money to put toward marketing.
 Page |3

Despite their limited budgets, the majority of small businesses engage in digital marketing. Well over half of
all small businesses currently market through their website (62%) and social media (61%).

Email marketing, at 39%, is another common marketing channel.

The popularity of these three marketing channels, as well as the perennial discussions of SEO, content
marketing, and AR/VR marketing, show that small businesses have a vested interest in understanding the
digital marketing landscape. Many businesses know this, which is why more than half plan to increase the
resources they apply to their websites and social media in 2018.

However, small businesses don't always optimize their resources for ideal digital marketing execution.
 Page |4

MOST SMALL BUSINESSES RELY ON AN IN-HOUSE TEAM FOR DIGITAL

MARKETING

The days when digital marketing could be tossed to an intern or young relative are decidedly over. Now, it’s
important for small businesses to invest in in-house staff who are familiar with marketing software, capable
of creating effective content, and accustomed to monitoring the latest digital marketing trends.

The most common digital marketing resource that small businesses use is an in-house team. Nearly half of
small businesses (43%) rely primarily on their employees to plan and execute their digital marketing.

When small businesses keep their marketing in-house, they have a consistent source of digital marketing
support from employees who are already familiar with the company’s brand.

However, it’s crucial that small business owners understand the benefits and drawbacks of an in-house digital
marketing team.

Since 55% of survey respondents have 10 employees or fewer, these in-house teams are likely small and may
lack resources or access to professional development opportunities.
 Page |5

In-house digital marketing employees may also be expected to shoulder digital marketing responsibilities in
addition to other, related jobs, such as traditional marketing, public relations, or sales.

In fact, that ‘team’ may be just a solo worker: About a third (30%) of businesses with in-house digital marketing
staff only have one employee dedicating time to the task.

To make the most out of an in-house digital marketing team, small businesses should hire digital marketing
staff with focus and intention, says Devon Kirk, director of sales, marketing, and public relations at Get Payroll.
She recently hired an assistant to help with digital marketing efforts.

When Kirk first started at Get Payroll, she and one assistant handled every digital marketing task, from website
redesign to social media marketing.

However, when Kirk had the opportunity to hire a new assistant, she knew that she wanted someone with
video production skills.

“Digital marketing features video heavily now, so it was important to me to incorporate that into our
marketing efforts,” Kirk said.
 Page |6

"Digital marketing features video heavily now."

Now, Kirk and her new assistant are creating a weekly video series, expanding Get Payroll’s YouTube channel,
and working on a podcast.

Though Kirk and her assistant comprise a two-person team, Kirk has been able to grow Get Payroll’s content
offers by zeroing in on specific skills.

When evaluating their in-house digital marketing staff, small businesses should hire strategically to ensure
their team has the knowledge to adapt to a changing digital ecosystem.

MARKETING SOFTWARE AMPLIFIES TEAM EFFORTS THROUGH AUTOMATION

No matter how many people a small business dedicates to digital marketing, they should consider investing in
digital marketing software.

Digital marketing software reduces the time it takes for marketing staff to reach out to potential customers,
generate, leads, and build lasting relationships by automating part or all of these processes. Hubspot, for
example, helps companies find the best leads and communicate efficiently with them by creating contact and
company records.

Marketing software is the second-most popular digital marketing resource, with 39% of small businesses using
software to support their digital marketing efforts.

There are two main categories of digital marketing software:

 Customer relationship management (CRM) automation

 Analytics

CRM automation software helps businesses track all the people they contact, including customers, vendors,
and leads. This ensures that leads don’t fall through the cracks.

CRM software also allows businesses to automate certain time-consuming correspondence, such as cold
outreach. Businesses then have an organized system for reaching out, which saves time and money.
 Page |7

Examples of CRM software include HubSpot and Salesforce

Analytics software lets companies know who is visiting their website, for how long, and what users do while
looking through a website’s pages.

Analytics tools help small businesses learn about their current audience so they tailor website content.

Some of the best analytics software includes Google Analytics, which is free. Moz and Hotjar offer both free
and premium versions.

5 KEY AREAS OF DIGITAL MARKETING INVESTMENT

 Website
 Social media
 Email marketing
 SEO
 Content marketing
 Page |8

Investing in websites, social media, and email marketing are the most popular. Less than a fourth (24%) of
companies plan on investing in content marketing, but since content marketing boosts SEO for little cost,
experts say this is a mistake. In addition, some forward-thinking small businesses plan to invest in AR/VR
marketing.

We’ll use survey data to examine these digital marketing channels and suggest strategies for how small
businesses can use each channel effectively.

WEBSITES ARE AN ESSENTIAL MARKETING TOOL

A business’s website is the main way it communicates its products and services to the world. Many small
businesses know this: The majority already have websites and are increasing their website investments in
2018.

Additionally, more than half (54%) of small businesses plan to invest in improving their websites this year.

This is a smart marketing move: In 2018, a website is the first stop for prospective buyers who want to learn
what a business has to offer. Additionally, e-commerce is gaining importance. Business Insider reports that e-
commerce will make up a forecasted 17% of all retail sales in the U.S. by 2022.

“We live in a world where people Google before they shop, visit online review sites before they buy, and check
in via Facebook as they go about their days,” writes Nicole Leinbach-Reyhle for Forbes.

Whether a small business sells handmade linens, offers landscaping services, or develops mobile apps for
clients, a website is an opportunity for prospective buyers to learn what that business has to offer.

A good small business website should have an attractive design, clearly present the company’s services or
goods, and load quickly.

Edita's Castingis a small, family-owned talent agency with an eye-catching website. Its front page scrolls
through continuously changing sections of the company's actors' and dancers' faces.
 Page |9

The company shows off its main asset – a host of diverse, personable talent – and includes clear buttons at
the top of its minimalist homepage.

Virtually all small businesses benefit from building a website that can help prospective customers learn more
about their brands.

CONTENT MARKETING BUILDS BRANDS AND BOOSTS SEO

Our survey found that content marketing is one of the most underused digital marketing channels.

Content marketing encompasses all of the content a small business produces, including blog posts,
whitepapers, ebooks, videos, and more.

However, few small businesses make use of content marketing. Four-fifths (80%) of these companies do not
engage in content marketing as a digital marketing strategy.

In fact, content marketing is one of the least popular marketing strategies. The only marketing channel that’s
less popular is AR/VR marketing, which is an emerging technology.
The worth of content marketing, however, is proven, and it should be a tool in any small business’s toolkits.

CONTENT MARKETING IS VALUABLE FOR SEO

Despite its lack of popularity, content marketing remains one of the best ways for small businesses to define
their brands and improve their websites' SEO.
Content marketing helps to improve SEO by allowing businesses to target keywords, improve search ranking,
and provide helpful content to current and potential customers.
For example, if a small software development company wants to rank for local search results about
development companies in Boston, a team member could write a blog post about the history of software
development in Boston and why it’s a great place for quality development teams to flourish.
 P a g e | 10

The post could mention strategic keywords that help the company rank for industry terms and phrases.
In the end, companies become more visible to their target audiences by providing useful, entertaining
information.

HOW SMALL BUSINESSES CAN ENGAGE IN CONTENT MARKETING

Though content marketing is a highly cost-effective digital marketing strategy, it isn’t easy. That’s probably
why so few small businesses engage in content marketing or plan to invest in the activity in 2018.
According to Demand Metric, content marketing is 62% less expensive than traditional marketing and
advertising but generates three times more leads. Small businesses can harness the power of content
marketing to reach more people at a fraction of the cost.
However, regularly creating and publishing blog posts, white papers, ebooks, and infographics requires time,
writing talent, and knowledge of a business’ brand and strategy.
Nonetheless, since consistent content marketing brings measurable returns, companies should consider
following these steps for developing a content marketing strategy:
Brainstorm a unique contribution.
What information can your business offer that no one else can? This could be a case study of an innovative
project, insight into how a product is crafted, or suggestions for how customers can apply products or services
in their lives.
A. Brainstorm a unique contribution.
What information can your business offer that no one else can? This could be a case study of an innovative
project, insight into how a product is crafted, or suggestions for how customers can apply products or services
in their lives.
B. Define your content marketing goals
. Are you aiming to improve your ranking for certain keywords, build your brand, or both? Have you thought
about how many qualified leads you need to reach your growth goals?
C. Consider the various types of content available
What kind of content is your business already suited to create? A. (articles, videos, podcasts, infographics).
D. Create a content schedule.
How often will you produce content?
E. Define content creation and publication responsibilities.
Who is in charge of what?
 P a g e | 11

SOCIAL MEDIA HELPS COMPANIES CONNECT WITH CUSTOMERS

Social media is an essential part of any small business’s marketing strategy.
This makes sense: Basic social media outreach is a free way to reach potential customers.
Three out of 5 small businesses (61%) use social media marketing to market their brand.

According to research by Texas Tech University, companies that use social media marketing effectively are
more likely to cultivate brand loyalty.
More than half of small businesses (51%) plan to invest more in social media marketing in 2018.

Since so many businesses focus on social media, it’s important that both those businesses and their digital
marketing partners understand how to engage with customers effectively.
“Social media is really about having a conversation. A lot of people get social media wrong because they just
broadcast their business. But to be effective, you have to engage in conversations with people,” Gutierrez said.
For example, the American restaurant chain Denny’s Diner created a Tumbler profile to connect with a young,
Internet-savvy demographic. Other Tumbler users can ask the Denny’s profile questions, which Denny’s
frequently answers.
 P a g e | 12

By excelling at a funny, yet warm tone, Denny’s has become famous for its social media presence.
When businesses engage directly with customers, they can better understand what customers want.
To facilitate those conversations over social media, businesses should look for tools that give them
opportunities to connect.
Social listening software lets companies know when Internet users mention them, even without hashtags.
Some popular social listening tools include:

 Mention
 Hootsuite
 Sprout Social
When businesses take charge of their social media presence by engaging with users and trying social listening
tools, they leave a positive impression on potential customers.

USE TOOLS TO SCHEDULE SOCIAL MEDIA POSTS

To maintain a social media presence, small businesses should consider making a social media calendar.
It’s difficult for small businesses to establish a social media rhythm, said Chris Ciunci, managing partner at
marketing group Tribal Vision. “Often, companies with 1-10 employees post reactively. They have no real
rhyme or reason. There needs to be some formality to and process involved with posting on social media.”
Ciunci recommends tools like Hootsuite for small businesses that struggle to post regularly.
 P a g e | 13

Hootsuite allows companies to schedule tweets and Facebook posts in bulk, which alleviates the stress of daily
social media planning. Since the majority of small businesses with in-house staff only have one employee, that
employee can make better use of her time by planning a calendar in advance.
Most social media scheduling tools provide metrics tracking. Businesses can see which posts garner the most
engagement and try to replicate that success.
For more recommendations about how small businesses can manage their social media presence, including
more granular data about specific social media platforms, read our small business social media survey.

AR/VR MARKETING LETS SMALL BUSINESSES SHOWCASE PRODUCTS

Augmented reality (AR) and virtual reality (VR) marketing take advantage of cutting-edge technology to let
consumers get close to a product. They can try the product without actually buying anything or even being in
the same room.
AR/VR marketing is not yet mainstream among small businesses: Only 10% engage in AR/VR digital marketing.
However, that number more than doubles (21%) for small businesses with 50 or more employees.

For example, IKEA’s VR app allows consumers the chance to position furniture in their homes.

IKEA VIRTUAL REALITY APP

Since furniture is bulky and expensive, it’s difficult to ‘try out’ the same way someone might try out, then
return, a pair of pants. Apps like IKEA’s are a major part of circumventing that problem.
Business owners in certain industries have figured out how to leverage AR/VR marketing to show off their
products.
For example, Derrick Bozkurt, a Colorado realtor at House in Motion, began using VR in 2016 to create virtual
house tours.
 P a g e | 14

“A big challenge in real estate is inaccurate property descriptions. We’ll drive to a property and within seconds,
clients say it’s not what they expected,” Bozkurt said.
For several years, he’s been working on a VR solution to eliminate the problems caused by inaccurate listings.
“We’ll go out and shoot properties with virtual reality or 360-degree video so that prospective buyers can
experience them remotely,” Bozkurt explained.
Clients can explore properties through online portals, like the one below.
House in Motion VR reality marketing
VR marketing lets Bozkurt’s clients know exactly what kind of home they’re considering, which is why the
technology gives him a competitive edge.
As AR and VR solutions become more affordable and flexible, businesses can look to the technology as a way
to give customers an accurate impression of products.

EMAIL MARKETING DEVELOPS MORE DIRECT CONSUMER RELATIONSHIPS

Email marketing, when done well, allows a company to develop deeper relationships with consumers.
Two-fifths (40%) of small businesses use email marketing to reach their consumers, which makes it the third-
most popular digital marketing channel.
That number lags far behind websites (62%) and social media (61%). Small businesses that don’t use email
marketing are missing a key opportunity to connect with the people most invested in their products.
 P a g e | 15

A comprehensive email marketing strategy might include a weekly or monthly newsletter with relevant articles
and a new product roundup, as well as eye-catching copy on basic emails like sales confirmations.
For example, TopatoCo, an e-commerce platform for independent creators, showcases its creativity in
shipment tracking emails. This one has the subject line "Someone's about to get a package from TopatoCo!"

The care TopatoCo's sales and marketing team take in writing email copy is obvious. It's funny, short, and
informative, and it makes customers want to buy from the company again.
Additionally, small businesses should create segmented email lists to engage the members of their audience
most likely to make a purchase, open an email, or spend time on a website.
For example, TopatoCo could create a list of every customer who opened the shipment emails like the one
above, then send a coupon to these customers as a reward for being engaged email readers.
Email automation technology allows the smallest of businesses to send personalized messages to multiple
customer groups.
"Marketing automation is exploding right now," says Ciunci. "I would start with MailChimp, or a more
sophisticated platform like HubSpot or Marketo."
Automation is essential because it saves time for small marketing teams.
Whatever a business's email marketing strategy, they should incorporate their personality in emails.
 P a g e | 16

EVEN SMALL BUSINESSES CAN PARTAKE IN DIGITAL MARKETING SUCCESSFULLY

It may seem like many digital marketing channels and efforts, from SEO to marketing software to email
campaigns, are too expensive or time-intensive to work well for small businesses.
However, digital marketing is necessary. It provides a crucial bridge between small businesses and their
audiences.
When small businesses are intentional about delegating digital marketing tasks and hiring for specific digital
roles, they can make the most of a small budget and an in-house team.
Companies' websites and social media presences are popular places to start, but email marketing and content
marketing also provide low-cost, high-reward opportunities to connect with consumers. AR/VR marketing is
an ideal option for small businesses that want to give consumers a sense of immediacy.
Ultimately, digital marketing provides a way for small businesses to distinguish themselves in an increasingly
chaotic digital sphere.

How E-Commerce Businesses Can Benefit From Influencer Marketing

SOCIAL INFLUENCERS CAN PROVIDE A HELPFUL HAND FOR E-COMMERCE BUSINESSES BY
BRINGING TRAFFIC, SPREADING BRAND AWARENESS, AND HELPING THEM GROW.
Businesses can no longer deny the power of the internet as the present and future frontier in creating
conversions and sales.
Recent e-commerce statistics on online shopping and online marketplaces show massive sales and
conversions. People using the internet for various services is guaranteed to double in the next few years.
The ease of discovering information is a primary feature of the internet making people ditch traditional forms
of media.
With social media comes the rise of social influencers: the non-celebrity experts with substantial followings.
Influencers have great reach and engagement with their audience, and businesses have realized how they can
team up with influencer to promote their products and services.

HOW INFLUENCER MARKETING CAN HELP YOUR BUSINESS GET LEADS

Lead generation is not an easy task and requires some massive effort. However, you can make this task easier
by borrowing someone’s following and massive audience to market your own brand.
With influencer marketing, you already have a set audience, and you are on your way to influence a crowd
and build engagement, conversions, and ROIs.
One great way you can use social influencers is by partnering with them in content creation. These influencers
will create content based on your brand and post it on their social media accounts.
More than half of consumers (56%) are more likely to purchase a product if they see a positive image of it.
 P a g e | 17

For example, J. Crew collaborated with Melanie Elturk, who is a social influencer in the fashion niche. She is
the CEO of Haute Hijab. J Crew and Melanie created a post with a brand tag, featuring J. Crew’s stuff.

Melanie has over 255k engaged followers and the company was able to enter an already-established
community of loyal fashion lovers who fit their target market.
Hiring an influencer to create content, however, can get expensive depending on the influencer and the
extent of his or her reach.

HOW TO CHOOSE AN INFLUENCER FOR E-COMMERCE

Before you choose the right influencer for your brand, you have to create your own vision and values. What
is your business philosophy? Every business should have one as a guiding principle.
Once you have identified this you can then choose a social media influencer that is in sync with your own
values and the goals of your brand. This is what it looks like to search an influencer on BuzzStream:
 P a g e | 18

Research influencers who work in your industry or cater to a similar niche audience. When looking at their
social media presence, ask yourself:
 Is their audience engaging with them?
 Do their goals resonate with your business's goals?

By connecting with influencers that connect with your brand, you can better collaborate and create authentic
content.
Finding the right influencer can be challenging, however, by doing thorough research, you can better position
your brand to make alliances that will boost your brand’s presence.

HARNESS POTENTIAL OF USER GENERATED CONTENT

Instead of hiring an influencer, businesses can also harness the influencer potential of their customers by
encouraging them to generate content.

For example, GoPro motivates customers to share the videos and images they capture to show the best one-
off on their Instagram account.
Users find it a perfect way to spread the word about themselves across 15 million followers. For the brand,
it’s an opportunity to provide other people with social proof.
 P a g e | 19

ALIGN THE INFLUENCER, PLATFORM, AND YOUR BRAND

There are tons of social media platforms out there but picking the right one for your business can be a tricky
move.
The first thing you should consider is your audience – Who are you trying to connect with through an
influencer?
Create buyer personas that humanize the different segments of your target audience.

When creating personas of your target audience, consider their:

 Age
 Gender
 Income
 Educational level
 Personality
 Preferred platforms
By knowing basic information about your audience, you can better determine which platforms to use for your
social media strategy.
Once you get to know your audience, the next step is to know your goals.
 P a g e | 20

Ask yourself:
 What kind of engagement are you looking for?
 Do you want to build brand awareness or do you want to establish a customer support channel?

Your goals can help you choose the right kind of social media platform that aligns with your audience and
business goals.
For example, Facebook has more than a billion users, and it is a great platform if you are keeping in touch with
a dedicated audience, while Instagram and Pinterest can be a way for visually-driven businesses to boost brand
awareness.

GIVE PEOPLE THE SOCIAL PROOF THEY CRAVE WITH INFLUENCER MARKETING
Influencer marketing is effective because it gives people “social proof” that your business’s products and
services are worth the investment.
By considering your target audience and business goals, you’ll be better positioned to find the right influencer
to promote your brand among his or her followers. Businesses can also encourage user-generated content
campaigns to harness the influencer potential of all of their customers.
Businesses unsure of how to find the right influencer for their brand can consult with influencer marketing
agencies with experience in their industry.

4 STEPS TO PREPARE YOUR BUSINESS FOR E-EXPORT

While the internet creates the illusion of a borderless world, e-commerce businesses still have to understand
the peculiarities of each country, choosing their market for export. However, expanding an online business
globally today seems more realistic than ever.
DHL logistics company forecasted the cross-border e-commerce market would grow by 25% by 2020.

 E-commerce markets continue to expand, especially those in niches such as:

 Beauty and cosmetics
 Pet care
 Food and beverage
 Sporting goods
According to Shopify research, more than 63% of European consumers make purchases from overseas
retailers, overpaying for delivery and tax levy. Whereas, 21% of Brits don’t purchase abroad because of the
lack of brand recognition.
How can your e-commerce business attract international customers and increase brand recognition overseas?
Create a detailed cross-border digital marketing strategy.
 P a g e | 21

If you have a plan, it’s much easier to allocate your time, sort out priorities, and reach the desired outcome
quicker.
Almost every brand can sell internationally if they realize the potential demand and are brave enough to put
in the work necessary for success.

How to Prepare Your Business for E-Export

A. See where there is a demand for your product using digital tools (e.g., Google trends, Consumer
Barometer)
B. Examine obstacles by researching your competitors and making sure you're complying with the target
country's importation laws
C. Localize your marketing strategy to the host country (e.g., language, payment method, size charts if
selling clothing or shoes, and graphic design)
D. Audit your processes and make improvements

Step 1. See Where There Is a Demand for Your Product

Businesses should first identify which countries have a demand for the products you offer.
If have already found your “Zag,” or what sets you and your products apart from everyone else, then you’re
ready to analyze:
 Demographics of your website’s visitors
 Engagement rate
 Conversion rate
 Cart abandonment/bounce rates

This first step will help you select the regions for future analysis.
If you are still in the “Zig” position or selling ordinary products with additional value, and you don’t have
enough organic traffic from other countries, then digital tools can help you gain insights that can inform your
next steps.

 GOOGLE TRENDS
Google Trends is a free tool designed to help retailers examine the most popular queries across different
markets.
Using Google Trends service, you can compare the statistics of up to 5 keywords to reveal how often these are
used in different regions, find out the related queries and track in which categories users search by them more.
Be aware that by checking a query in English, the system will only track exact-matched words and phrases,
and most consumers from your potential countries for export can use their native language instead.

 GOOGLE SHOPPING INSIGHTS

In case you are planning to export your e-commerce business to the United States, use Google Shopping
Insights as a tool for in-depth research on market trends (since it is currently available only in the U.S. regions).
 P a g e | 22

The service allows you to find out not only the query statistics data, but also reveal your main competitors and
analyze searches by device.
Google Shopping Insights is a great tool for businesses trying to plan their e-export strategy.
Moreover, the new Google feature helps study trends within a specific shopping category and compare the
demand.

 KEYWORD TOOL
Keyword Tool is another interesting tool, succoring to find the particular interests of consumers in a market
you want to penetrate.
The ability to research close to your keywords queries not only within Google search, but also on YouTube,
Bing, Amazon, eBay, Play Store, Instagram, and Twitter is its main advantage.
You can also find indicators of the average CPC and the competition in the number of advertisers bidding, how
the search volume has changed over the last 12 months, and most used hashtags of your e-commerce
contenders.
Please note, however, that the Keyword Tool is only partially free.

 CONSUMER BAROMETER
Assume that you have selected 1-3 countries you possibly can succeed in exporting your e-commerce business.
The next goal is to go deeper into market insights.
For this purpose, you can use Consumer Barometer, a Google tool which provides you with information on
online user behavior at different stages of the purchase funnel.
For example, you can reveal when they start researching a product you want to export, what devices and
methods they usually use, or how many brands they consider before making a choice. Moreover, you can find
consumer attitudes to international purchases — their fears and issues, most popular product types, or usage
of translation services.

 MARKET FINDER
Market Finder is another Google tool, which can help you find market insights and provide you with useful
recommendations on localization, payments, customer care, logistics, requirement, and tax and legal aspects.
Using Market Finder, you can also create an export marketing plan.
Along with that, to dive into inner country statistics and to see how the market has changed over the last year
is highly recommended. As an example, you may find the overall economic growth, average salaries, or tax
dynamics. For these purposes, use various researches of local consulting companies.
Using tools like these can help you examine the demand for your products in other markets and help you
determine which market presents the most potential
 P a g e | 23

STEP 2. EXAMINE OBSTACLES

Before you expand into new markets, you need to know what you’re getting yourself into.
Examine potential challenges such as competitors and local import/export laws of individual countries that
could slow down your momentum in these new markets.

RESEARCH YOUR E-COMMERCE COMPETITORS

There are three types of rivals, whether this is your home market or not.
 Primary
These are your direct competitors with the same target audience, product range, and prices. Pay special
attention to large marketplaces here as they usually rank first in the search results and have the highest CPC.
 Secondary
These are companies with a similar assortment but a different audience.
 Tertiary
These are retailers indirectly related to you; however, they may become competitors if you expand your line
in the new country at a later date.
Primary competitors require the most attention at the beginning of your expansion endeavors.
You can use a number of tools to identify and research these rivals. For example, SimilarWeb allows you to
find out the website traffic data, including sources, regions, and referring sites. It also analyzes display
advertising, website content, country and category ranks, pages per visit, bounce rate, as well as similar
sources.
Additionally, SEMrush and Alexa let you compare several websites or categories simultaneously and check the
information on consumer behavior data, popularity, paid and organic traffic shares.
Organize your competitors into categories and tackle the ones closest to your brand first.

MAKE SURE YOU COMPLY WITH EXPORT CONTROLS IN THE TARGET COUNTRY
Every country has its own export regulations.
If you are planning to export to EU countries, consider the new EU VAT rules (called “e-commerce package”)
that will come into force in January 2021. These rules aim to combat fraud.
According to these rules, marketplaces or platforms will be deemed for VAT purposes to be the supplier of
goods sold to customers in the EU.
Consequently, e-exporters will have to collect and pay the VAT on these sales.
 P a g e | 24

Additionally, companies that sell export goods to European customers online will be able to deal with their
VAT obligations in the EU through one easy-to-use online portal OSS in their language and their country.
Also, don’t forget that every member state has its own VAT rate, fluctuating between 17% to 25%, a list of
prohibited and restricted goods, and many other subtle aspects.
Make sure you educate yourself on your target country’s laws to avoid penalization.

STEP 3. LOCALIZE YOUR MARKETING STRATEGY

The target country where you expand your business will have at least four “distances” from your home market:

 Cultural (e.g., language, ethnicities, religions, and social norms)

 Administrative (e.g., lack of shared monetary association, and political hostility)
 Economic (e.g., differences in consumer incomes, cost, and quality of HR resources)
 Geographic (e.g., physical distance, lack of common border)

To make these distances less drastic, consider localization.

 LOCALIZE FOR LANGUAGE

Most e-commerce exporters consider localization the biggest hurdle when expanding into a new market,
especially language.
 P a g e | 25

Seventy-two percent (72%) of users spend the most of their time on sites in their native language, and 82%
of customers are more likely to purchase a product if advertising is in their native language. Localizing for
language helps build trust with potential customers.
It’s important to hire a quality translation agency or a digital marketing agency that specializes on SEO
localization. Alternatively, you could hire a freelance translator and copywriter.
This is critical to efficient ranking on the local market SERPs.

 LOCALIZE FOR TRANSACTIONS

Payments are one more crucial element of export business localization. More than two-thirds of online
shoppers (67%) abandon carts because a site doesn’t support local payment methods.
For example, in the UK, almost all consumers use credit or debit cards, as well as PayPal to buy online while
41% of German shoppers pay on account.
Consumers in China prefer to pay online via AliPay and UnionPay while Brazilians choose credit cards and
Boleto Bancario system.
Your e-commerce website must support multiple payment methods to succeed.
However, localization is not limited to language and currency. It can also involve:
 Tailored size charts (especially, if you sell clothes and shoes)
 Graphic design of your ad display
 Video creatives (including brand ambassadors and actors).
If you don’t have a strong brand, the best solution at the early stage of selling abroad is to find a trading
partner who will help you and provide advice.
This can be large marketplaces or multi-brand stores.

STEP 4. AUDIT YOUR PROCESSES AND MAKE IMPROVEMENTS

At the fourth stage, you should go back to your initial findings and improve them.
Revisit your goals and see if your current processes are allowing your business to meet them,
Although the marketing strategy may not differ drastically from the one you use domestically, the
performance of your website may differ.
Regularly check analytics data and be flexible to adjust the plan at any moment.

 DEVELOP A CROSS-BORDER MARKETING STRATEGY

Preparation for exporting e-commerce business is a time-consuming process. However, this is a challenge that
may demonstrate excellent results and take you to the next level.
The more attention you give to research, the less complicated your expansion effort will be. Believe in your
product, optimize your e-commerce website, and consider the internal country rules to expand your e-
commerce business successfully.
P a g e | 26